Mortgage Rate Rise.

[Two Gun Bob]

With a mortgage rate rise probably on the cards how would the more astute and financialy savvy amongst you aproach the risk to new borrowing.
A 10 year fix on 100k of around £550 a month or a 5 year fixed for around the £500 mark.
No fees either way and the 5 year has a 1k cashback and mort term 21 years.LTV at around 77%

Assuming a saving of around 3k over the first 5 fixed to offset against future rises.
Is the 5 year fix a better call or is it down plain and simple to risk avertion and lock at all costs @10 year.

 

[squirtyflower]

£100k at £500 a moth seems a tad high to me, never mind the £550.
What are the interest rates?
Have you shopped around?

We have one where £100k is costing approximately £200pcm

 

[Two Gun Bob]

£100k at £500 a moth seems a tad high to me, never mind the £550.
What are the interest rates?
Have you shopped around?

We have one where £100k is costing approximately £200pcm

Never mate ? 100k repayment over 21yrs ??
One sec ..brb

 

[squirtyflower]

Never mate ? 100k repayment over 21yrs ??
One sec ..brb

It's an interest only loan, should have mentioned that tbh

 

[Two Gun Bob]

2.10% with no fees but less is acheivable with fees of around 1500 plus
London and county brokers with no charges to set up.
21 year fixed 5 years or 10 years .around £495 ish for 5 year fixed

 

[Two Gun Bob]

For a ten year fixed around 2.9% thereabouts @ circa £540 ish ish

So 5 or 10 there lies the question.
I guess we have bottomed now so up it's going but by how much ?
And how much would it need to rise at the end of 5 years to justify paying an extra 3k during the initial 5

Only used interest only for buy to let in the past and this purchase is for our daughter so has to be repayment.

 

[squirtyflower]

I've just used the money saving expert website and seen a deal at £410 but with fees

 

[denislawsbackheel]

Factor in what the remortgage fees might be in 5 years as well as any increase in rate 5 years on.

 

[hilts]

For a ten year fixed around 2.9% thereabouts @ circa £540 ish ish

So 5 or 10 there lies the question.
I guess we have bottomed now so up it's going but by how much ?
And how much would it need to rise at the end of 5 years to justify paying an extra 3k during the initial 5

Only used interest only for buy to let in the past and this purchase is for our daughter so has to be repayment.

Take the 10 fella at 2.9%, historically that's a good rate. Peace of mind is worth £50 a month.

 

[Two Gun Bob]

I've just used the money saving expert website and seen a deal at £410 but with fees

War chest of 30k maybe 35k so not a lot left for extra fees.
Solictors survey excluded and stamp duty negligable but £410 sounds handsome.